Technology options Toolkit - Transforming industries in coal regions for a climate neutral economy - EUROPA

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Technology options Toolkit - Transforming industries in coal regions for a climate neutral economy - EUROPA
Toolkit
Technology options
   Transforming industries in coal regions
   for a climate‑neutral economy

   Energy
Technology options Toolkit - Transforming industries in coal regions for a climate neutral economy - EUROPA
INITIATIV E FOR COA L REGIONS IN T R A NSITION                                         2

SUPPOR T M ATE RIA L S

   Providing support materials to coal regions in transition
   The Initiative for coal regions in transition developed the following support materials to assist
   practitioners in coal regions (including peat and oil shale regions) across Europe.

   Transition strategies toolkit                                                             Sustainable employment and welfare support toolkit
   Guidance on how to:                                                                       Addresses the issues of:

    y develop a transition strategy in coal regions;                                          y skill needs and reskilling for coal regions in transition;
    y identify actions and projects to support the strategy;                                  y cooperation among stakeholders;
    y monitor, evaluate and continuously adapt the strategy.                                  y support options for workers who are at risk of losing their jobs;
                                                                                              y economic diversification of coal regions as a means for
     Link
                                                                                                long‑term job creation.
   Governance of transitions toolkit                                                           Link
   Guidance on how to:
                                                                                             Environmental rehabilitation and repurposing toolkit
    y design the right governance model to support a
                                                                                             This toolkit gives advice on:
      transition process in coal regions;
    y facilitate stakeholder engagement;                                                      y securing finance;
    y enhance the role of social dialogue and of civil society in the                         y knowledge and tools;
      transition process.                                                                     y governance and institutions to support mine closure, environmental
                                                                                                rehabilitation of mines and repurposing of coal related infrastructure.
     Link
                                                                                               Link

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Technology options Toolkit - Transforming industries in coal regions for a climate neutral economy - EUROPA
INITIATIV E FOR COA L REGIONS IN T R A NSITION        3

TABLE OF CONTENTS

    Aims and scope                                4
                                                          How to use this toolkit
    Who is this toolkit for?                      4
                                                          Slides / Pages 6‑33
    Why do we need this guidance?                 4
                                                          This section features key ideas and concepts behind
                                                          technology options for EU coal regions.
    Technology options for a climate‑neutral
    economy by 2050                               5       It can also be used as a stand‑alone presentation. For
                                                          each slide, more detailed information can be found in
    Approach                                      6       the accompanying notes.

    Background                                    7

    Re‑use of coal power plants                   8
                                                          Accompanying notes / Pages 34‑59
                                                          The accompanying notes follow the same structure
    Decarbonising energy‑intensive industries    17       as the slides and offer a more in‑depth look at each
                                                          section, including further resources, links, examples,
    Hydrogen                                     26       and case studies.

    Options for non‑energy uses of coal          32

    Accompanying notes                           34

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Technology options Toolkit - Transforming industries in coal regions for a climate neutral economy - EUROPA
INITIATIV E FOR COA L REGIONS IN T R A NSITION                                  4

AIMS AND SCOPE

 This toolkit explicitly addresses:

  y the repurposing of infrastructure related to coal‑fired power plants;
  y the decarbonisation of coal‑intensive industry with a focus on steel
    production;
  y the role of hydrogen production for regional development;
  y the potentials of non‑energetic uses of coal.

WHO IS THIS TOOLKIT FOR?

  y Policy makers in regional government.
  y Stakeholders engaged in strategic industrial transition processes.

WHY DO WE NEED THIS GUIDANCE?

 This toolkit focuses on what technology options exist and which technological
 developments are likely in the future. The information gathered will provide
 decision‑makers in coal regions with a general overview of the current state
 of knowledge regarding the available technologies, enabling them to explore
 new business models, which also make use of the already existing coal related
 infrastructure in their region. This in turn to help with the development of
 regional strategies.

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Technology options Toolkit - Transforming industries in coal regions for a climate neutral economy - EUROPA
INITIATIV E FOR COA L REGIONS IN T R A NSITION                5

Technology options for a climate‑neutral
economy by 2050
Being climate‑neutral by 2050 means that, from today on, all
investments in long‑term infrastructure must be compatible with a
zero‑carbon economy.

For coal regions, the key questions are:

 y what elements of existing infrastructure can be useful in this
   energy transition?
 y what parts of the regional industrial value chains are to be
   sustained?

Therefore, this toolkit focuses on the question:

 y which industrial technology options are in line with long‑term
   climate‑neutrality targets, while making use of today’s existing
   infrastructure?

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Technology options Toolkit - Transforming industries in coal regions for a climate neutral economy - EUROPA
INITIATIV E FOR COA L REGIONS IN T R A NSITION                    6

                                                              APPROACH

                                        Technology options for industries in
                                            a climate‑neutral economy

                                                   This toolkit covers four key topics

RE‑USE OF COAL POWER PLANTS                                                          HYDROGEN

                                                                        H2
                                  Energy storage                                     Future application

  Conversion to gas or renewable energy                                              The EU hydrogen strategy

                                Non‑energy uses                                      Hydrogen demand projections
                                                                                     Hydrogen in coal regions
             DECARBONISING
ENERGY‑INTENSIVE INDUSTRIES
                                                                                     OPTIONS FOR NON‑ENERGY
 Relevance of energy‑intensive industries                                            USES OF COAL
                         for coal regions
                                                                                     Future prospects of coal products
             Decarbonising steel production

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Technology options Toolkit - Transforming industries in coal regions for a climate neutral economy - EUROPA
INITIATIV E FOR COA L REGIONS IN T R A NSITION                         7

Background

Transitioning to a climate‑neutral economy
The transition to a climate‑neutral economy has the potential to attract large
investments and act as a driver of the innovation system, thus supporting the
future well‑being and economic sustainability of coal regions.
                                                                                                                                                    Photo by thyssenkrupp AG
Multi‑billion EUR investments in new infrastructure (e.g. hydrogen) and
technologies (for power plants and factories) will hardly come from individual
players alone. They need a collective effort by many regional stakeholders,
including policy‑makers, the private sector, research and civil society.         IN4CLIMATE

                                                                                 In North Rhine‑Westphalia (NRW), Germany’s industrial heartland,
1. A key first step is to understand what technology options exist and           the state government has launched the initiative ‘IN4climate.NRW’
   what their characteristics are. This is what this toolkit can help with.      to shape and accelerate the transformation of NRW’s industry to a
                                                                                 climate‑neutral industrial base.
2. The second step is to bring together key regional stakeholders and develop
                                                                                        ‘We will demonstrate that successful climate
   a tailor‑made strategy. This is addressed in the following toolkits:                 protection and a strong economy are not mutually
                                                                                        exclusive, but rather the foundations and drivers of
           Transition strategies                                                        prosperity and quality of life in our state.’
           Governance of transitions                                                    Andreas Pinkwart, Minister of Economic Affairs, Innovation, Digitalisation
                                                                                        and Energy of the State of North Rhine‑Westphalia, Germany

                                                                                 Around 30 companies and associations from the fields of steel
                                                                                 and metals, chemicals, cement, glass, paper and building materials
                                                                                 are participating in the initiative alongside six research institutes
                                                                                 and the NRW state government.

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Technology options Toolkit - Transforming industries in coal regions for a climate neutral economy - EUROPA
INITIATIV E FOR COA L REGIONS IN T R A NSITION    8

                                        Re‑use of coal power plants

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Technology options Toolkit - Transforming industries in coal regions for a climate neutral economy - EUROPA
INITIATIV E FOR COA L REGIONS IN T R A NSITION                            9

                Re‑use of coal power plants

         Energy Storage
         Energy storage technologies will play a key role as
         a supplement for intermittent renewable sources                      Thermal energy storage
         like solar and wind.

         The integration of energy storage systems within existing
         power plants has some major advantages.

          y The re‑use of coal‑power plants stops the facilities from         Pumped hydro energy storage
            becoming stranded assets.
          y Using the existing infrastructure reduces the cost of plant
            closures, while also reducing the investment costs for
            setting up the new energy storage systems.
          y Reskilling can help former workers keep their jobs.               Chemical battery storage systems
          y The region’s identity as a power producer will remain,
            which can help with public acceptance.

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Technology options Toolkit - Transforming industries in coal regions for a climate neutral economy - EUROPA
INITIATIV E FOR COA L REGIONS IN T R A NSITION                            10

                Re‑use of coal power plants

                Thermal energy storage
                Market‑ready technology

                Molten salts energy high‑temperature storages. Alternatives
                currently under development: Carnot batteries / miscibility gap
                alloys.

                                                                                                                                    Photo by Goldorak (CC BY 2.0)
                Potentials:
                  y interlinking power and heat energy systems;
                  y reducing costs as existing infrastructure and power plant      ENERGY STORAGE PLANT CONVERSION BASED
                    technologies can be further used.                              O N M O LT E N S A LT S , S PA I N

                                                                                   In Asturias, northern Spain, the coal‑fired power station ‘Aboño
                Challenges:                                                        I’, with a capacity of 342 MW, is planned to close in 2021. The
                                                                                   owning company EDP is evaluating the potential to replace the
                  y overall efficiency and maximum capacities are still limited.   facility with an energy storage system consisting of molten
                                                                                   salt electrical heaters that allows electric charge and discharge
                                                                                   from the power network. A first evaluation showed the potential
                                                                                   conversion could include a 358 MW storage facility with a
                                                                                   discharge time of 2 hours. The total estimated cost of the project
                                                                                   is EUR 201 million, with foreseeable job options for 300 workers
                                                                                   during construction and 50 workers after completion.

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INITIATIV E FOR COA L REGIONS IN T R A NSITION                          11

                Re‑use of coal power plants

                Pumped hydro energy storage
                Potentials:
                  y high capacities;
                  y long‑time storage possible;
                  y market‑ready;
                  y unconventional use in abandoned (underground)                                                            Photo by Genex Power Limited
                    mines might become a feasible option in some coal
                    regions.

                Challenges:
                                                                             THE PUMPED STORAGE HYDRO PROJECT IN
                  y geographic requirements limit applicability;             KIDSON, AUSTRALIA

                  y environmental impacts.                                   To be finalised in 2022, the AUD 700 million K2‑Hydro Project will
                                                                             utilise two existing mining pits from an abandoned gold mine as
                                                                             the upper and lower reservoirs for a pumped hydro energy storage
                                                                             facility that will have a capacity of 250 MW and will be able to
                                                                             provide up to 2 000 MWh in eight hours. The project is forecast to
                                                                             contribute AUD 353 million in net public benefit and will provide
                                                                             510 jobs during construction and 20 operational jobs.
                                                                               Read more

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INITIATIV E FOR COA L REGIONS IN T R A NSITION                            12

                Re‑use of coal power plants

                Chemical battery storage systems
                Market‑ready technology

                Mostly Li‑ion and sodium sulfur, in the megawatt range.

                Potentials:                                                                                                               Photo by LEAG

                  y relatively cost‑effective;
                  y easy to install;
                  y high power‑to‑energy ratio;                                LEAG ‘BIGBATTERY’ PROJECT AT COAL‑FIRED
                                                                               POWER PLANT ‘SCHWARZE PUMPE’, GERMANY
                  y stabilises the electricity grid.
                                                                               In August 2020, the energy company LEAG finished the installation
                                                                               of a 53 MWh capacity lithium‑ion battery storage on‑site of
                Challenges:                                                    their still running lignite power plant ‘Schwarze Pumpe’. LEAG
                                                                               is investing EUR 25 million in the lithium‑ion storage facility,
                  y short lifespan of 10‑20 years;                             comprising 13 containers full of battery racks. The German state
                                                                               of Brandenburg takes EUR 4 million of total investments. The
                  y limited lithium resources.                                 main use of the facility will be to provide primary load balancing
                                                                               electricity to stabilise the grid.
                                                                                 Read more
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INITIATIV E FOR COA L REGIONS IN T R A NSITION                                     13

                Re‑use of coal power plants

        Conversion to natural gas
        Potentials:
          y a technologically simple solution to reduce emissions in the short term;
          y reduced conversion costs as existing infrastructure and power plant
            technologies can be used;
          y high degree of flexibility thus complement intermittent renewables.

                                                                                                                                     Photo by Serge Ottaviani (CC BY‑SA 3.0)
        Challenges:
          y risk that conversions become stranded assets and produce lock‑ins;
          y methane leakages question the climate benefits of gas compared to coal.

        Take‑away
                                                                                             COAL TO COMBINED‑CYCLE GAS TURBINE
        As the combustion of natural gas still produces emissions, the share of gas in the   POWER PLANT TRANSFORMATION PROJECT IN
        energy mix is projected to decrease significantly after 2030. Taking into account    BOUCHAIN, FRANCE
        that there are already 270 GW of installed gas power plants in Europe, additional
                                                                                             In Bouchain, northern France, the energy company EDF
        coal‑to‑gas conversions are at high risk of becoming stranded assets.
                                                                                             transformed its coal‑fired power plant, which was shut down
                                                                                             2015, into a combined cycle gas turbine (CCGT) with a capacity of
                                                                                             606 MW. The company invested a total of EUR 400 million into the
                                                                                             converted power plant, which started running again in 2016.
                                                                                               Read more

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INITIATIV E FOR COA L REGIONS IN T R A NSITION                          14

                Re‑use of coal power plants

    Conversion to biomass
    Potentials:
     y co‑firing, conversion, replacement or relocation & decentralisation options;
     y reduced costs as existing infrastructure and machinery only need to be                                                                   Photo by rizox

       adjusted;
     y reskilling options for the local workforce.
                                                                                           IRELAND’S UTILITY STRUGGLES TO FIND
                                                                                           SUSTAINABLE BIOMASS SOURCES
    Challenges:
                                                                                           In County Offaly, Ireland, the local utility ESB had planned
     y concerns regarding climate neutrality and to ‘local’ aspects of biomass sourcing;   to switch one peat‑fired power plant to using biomass.
                                                                                           However, in 2019, the government refused to give
     y very limited in terms of scalability due to land and water consumption, and         permission to this conversion due to biodiversity and
       biodiversity concerns;                                                              climate concerns. The lack of information provided by the
                                                                                           running company ESB on the potential sources of biomass
     y the efficiency of biomass is lower than coal (it can be increased by using CHP      was the major issue for that decision, as the company
                                                                                           could not reasonably determine that the direct and indirect
       technology).                                                                        impacts on the environment would be sufficiently mitigated.
                                                                                           The regional authorities stated that a foreseeable ‘high
                                                                                           dependence’ on imported biomass would not be in line with
    Take‑away                                                                              both national and EU climate goals.
                                                                                           Bord na Móna, another Irish company running a co‑fired
    Coal‑to‑biomass conversions will be dependent on approved sustainable, secure          biomass plant, priorly raised public concerns as it mostly
    and long‑term efficient feedstock supply. Biomass is not a promising alternative for   used palm kernel shells from environmentally questionable
    most regions and, especially, cannot be recommended for large scale power plants.      palm oil monocultures as their source for biomass. Since
                                                                                           then, the company tried to switch to more sustainable
                                                                                           sources, but acknowledges that reliable, local and
                                                                                           cost‑effective biomass supply at scale remains a ‘significant
                                                                                           challenge’.
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INITIATIV E FOR COA L REGIONS IN T R A NSITION                       15

                Re‑use of coal power plants

                                                                                                         Hamburg Green Hydrogen Hub

                                                                                                                     Nordsee                              Schleswig-Holstein

         Combined renewable energy                                                                                                                                                     Hamburg
                                                                                                                                                                                                       Öffentlicher

         production and sector coupling
                                                                                                                                                                                                       Nahverkehr
                                                                                                                       380kV

                                                                                                         Transport

                                                                                                  Industrie

         Depending on site‑specific requirements, other renewable energy                                                       Nahwärme
                                                                                                                                                                                           Schwerlast-Transport

         technologies can be developed on coal plant sites, such as:
                                                                                                                                                                           Industrie
                                                                               Wasserstoff-Netz                                     H2
                                                                                                                               H2

          y solar power (PV or CSP);                                                                                                      Hamburg Green
                                                                                                                                          Hydrogen Hub

          y solar heating;                                                                                                                                                                         © Wärme Hamburg

          y wind farms;
          y deep geothermal energy.
                                                                           A ‘GREEN HYDROGEN HUB’ AT FORMER
         In many cases, a combination of renewables and energy storage     COAL‑FIRED POWER PLANT SITE IN HAMBURG,
                                                                           GERMANY
         will be beneficial.
                                                                           A consortia of Mitsubishi Heavy Industries, Shell, Vattenfall and
                                                                           the local energy company Wärme Hamburg are planning to build
         Former coal‑fired power plant sites might develop into            a 100 MW green hydrogen production facility at the site of the
         clean energy hubs combining energy production, and                coal‑fired power plant Moorburg in Hamburg, which only operated
                                                                           from 2015 to 2020. Due to it’s position in the port of Hamburg,
         processing (e.g. hydrogen) with demand.                           closeby to energy‑intensive industry companies and with access to
                                                                           the existing gas network and electricity grit connection, the project
                                                                           is expected to be key for the decarbonization efforts in Hamburg
                                                                           and aims to become a ‘Green Hydrogen Hub’ powered by renewable
                                                                           energy from offshore wind parks in the north sea. The project is
                                                                           expected to start operation in 2025.
                                                                             Read more
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INITIATIV E FOR COA L REGIONS IN T R A NSITION                            16

                Re‑use of coal power plants

         Non‑energy uses of coal‑fired power
         plant infrastructure
         Despite the benefits to keep coal‑fired power plants as sites for
         energy production or storage, there are also options for non‑energy
         uses of coal‑fired power plant infrastructure. This is especially true
         in cases where valuable geographic conditions make non‑energy
         options feasible, such as sites with access to ports and sites in
         densely populated urban areas.
                                                                                                                            Photo by Berber Verpoest (Bankwatch)

         Examples:
          y conversion of coal‑fired power plants into data centres;
                                                                                  GENK’S ONGOING TRANSITION
          y conversion to logistical ports for off‑shore wind;
                                                                                  Genk has successfully shifted from a mining to manufacturing
          y conversion to industrial parks;                                       and knowledge economy, and is, together with the surrounding
                                                                                  region, an example of redevelopment of industrial and mining
          y redevelopment to offices, student union centres, cultural sites.      infrastructure. Instead of demolishing existing mining facilities,
                                                                                  Thor Central and C‑Mine are great examples of creating unique
                                                                                  landmarks that respect heritage as an important part of
                                                                                  regional history, while transforming heritage spaces into modern
                                                                                  workplaces.
                                                                                    Read more
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INITIATIV E FOR COA L REGIONS IN T R A NSITION    17

                                        Decarbonising
                                        energy‑intensive industries

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INITIATIV E FOR COA L REGIONS IN T R A NSITION                          18

                Decarbonising energy‑intensive industries

           A paradigm shift
           For a long time, the debates about climate neutrality
           focused primarily on the energy sector. The industry
           sector was left out, as its emissions were considered too
           hard to abate. Yet, the industry sector is responsible for
           25% of Europe’s greenhouse gas emissions.
                                                                             COMPANIES’ ROADMAPS TO CLIMATE NEUTRALITY
           With the European Green Deal, there is a broad                    Various companies in energy‑intensive industries have already
           consensus that industry must be climate‑neutral by                developed their own roadmaps to climate neutrality.

           2050 at the latest. The question is no longer if, but how.        The Swedish steel company SSAB strives to become fossil‑free
                                                                             by 2045 by replacing its coal‑based steel production with
                                                                             hydrogen‑based steel production.
                                                                               Read more
                                                                             The German steel company Salzgitter aims at reducing its CO2
                                                                             emissions by 95% by 2050, also through hydrogen‑based steel
                                                                             production.
                                                                               Read more
                                                                             However, the transition will not be manageable by the private sector
                                                                             alone, but will need both support from and collaboration with public
                                                                             authorities.
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INITIATIV E FOR COA L REGIONS IN T R A NSITION                             19

                Decarbonising energy‑intensive industries

Relevance of                                     Number of persons employed in
                                                 energy‑intensive industries
                                                                                                                      Number of persons employed in
                                                                                                                      the mining and quarrying sector

energy‑intensive                                                                                                                                                    50,001‑100,000

industries for coal regions
                                                                                                                                                                    10,001‑50,000

                                                                                                                                                                    5,001‑10,000

                                                                                                                                                                    1,001‑5,000
Many coal regions have a high share of
energy‑intensive industry, such as steel,                                                                                                                           1‑1,000

cement and chemicals. Often, jobs in                                                                                                                                Data not available

energy‑intensive industries outnumber jobs
in coal‑mining.

These regions are facing a double
transformation: the phase‑out of coal and
the transition to a climate‑neutral industrial
base. Managing these transformations
successfully and timely is key to keep jobs        JOBS IN COAL MINING AND IN ENERGY‑INTENSIVE INDUSTRY

and wealth creation in the regions.                The map shows the number and regional distribution of jobs in coal mining compared to the jobs in
                                                   energy‑intensive industries per NUTS2 region. Indicators for energy‑intensive industry: manufacturing of basic
                                                   metals, other non‑metallic mineral products, chemicals and chemical products, paper and paper products.
                                                   Source: Eurostat

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INITIATIV E FOR COA L REGIONS IN T R A NSITION                                20

                Decarbonising energy‑intensive industries

    Challenges
    Long investment cycles in many energy‑intensive industries (30‑50 years or
    more): investments should be in line with a climate mitigation plan, which allows
    zero emissions by mid‑century following the EU’s 2050 target.

    The need for new technologies and production processes: climate‑neutral
    production of steel, cement and chemicals cannot be achieved with conventional
    production techniques.

    Immaturity of zero‑carbon technologies and high potential costs: zero‑carbon
    technologies for the primary production of steel, cement and chemicals are still in
    the development phase and unlikely to be economically competitive once they do
    become available.
                                                                                             ‘The steel sector is currently the largest
                                                                                             industrial consumer of coal’
    Opportunities                                                                            IEA technology perspectives, 2020

    The need to decarbonise energy‑intensive industries can spark innovation and bring       ‑

    significant investments into regions. Companies can improve their competitiveness        Among the energy‑intensive industries, the steel industry is
    by offering innovative products like green steel and green cement. It is also a way to   most closely linked to the coal industry and responsible for
                                                                                             4% of the EU’s overall CO₂ emissions.
    keep industrial jobs in Europe, in the regions.
                                                                                             Therefore, this toolkit takes a closer look at the steel
                                                                                             sector and its technology options for a transition to
                                                                                             climate‑neutrality.
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INITIATIV E FOR COA L REGIONS IN T R A NSITION                         21

                Decarbonising energy‑intensive industries

         Steel production: technology options for decarbonisation

         Decarbonising primary steel‑making processes requires the          Key indicators
         development of new technologies, massive investments in
         new production facilities and, depending on the technology,
                                                                            Three key indicators are crucial to assess the potential of
         large amounts of (clean) hydrogen as a feedstock.
                                                                            different technology options for a green steel production:
         Research is currently focusing on three technology options
         for the production of CO₂ ‑free or low‑CO₂ steel:                              CO₂ reduction potential
                                                                              CO2
          y direct reduction with hydrogen and smelting in the                          How big is the CO₂ reduction compared to today’s technology
                                                                                        standard (conventional blast furnace route)?
            electric arc furnace (H‑DRI);
          y alcaline iron electrolysis (Electrowinning);                                Expected technical maturity
          y CO₂ capture and utilisation (CCU) of waste gases from
                                                                                        When is the technology expected to be ready for commercial
            integrated blast furnaces.                                                  use?

                                                                                        CO₂ abatement costs
                                                                              €         At what CO₂‑price is the technology cost‑competitive compared
                                                                                        to conventional steel production?

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INITIATIV E FOR COA L REGIONS IN T R A NSITION                     22

                   Decarbonising energy‑intensive industries

                                   Technology options to decarbonise steel production

                        Direct reduction with hydrogen                                           CO₂ capture and utilisation
                                                           Alcaline iron electrolysis
                        and smelting in an electric arc                                          (CCU) of waste gases from
                                                               (Electrowinning)
                                furnace (H‑DRI)                                                   integrated blast furnaces

 CO2    CO₂ reduction                     ‑97%                          ‑87%                                ‑50 to ‑65%
        potential

       Expected
       technical                      2025‑2030                    Only after 2050                          2025‑2030
       maturity

                                2030: 100‑165 €/t CO₂                                                 2030: 230‑440 €/t CO₂
 €     CO₂ abatement                                          2050: 170 to 290 €/t CO₂
       costs                     2050: 85‑140 €/t CO₂                                                 2050: 180‑380 €/t CO₂

                                                          Requires only renewable electricity    Still requires coking coal and does
 KEY FEATURES                    It requires hydrogen.     and is more energy‑efficient than    not avoid the generation of CO₂, but
                                                                   the other options.           only its direct emission into the air.

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INITIATIV E FOR COA L REGIONS IN T R A NSITION                        23

                Decarbonising energy‑intensive industries

     Direct reduction with hydrogen and
     smelting in the electric arc furnace (H‑DRI)
     Potentials:
      y highest CO₂ reduction potential;
      y likely to be ready for application in 2025‑2030;
      y lower production costs than other green steel technologies.                                                      Photo by Luleå University of Technology

     Challenges:
      y it requires the development of large‑scale hydrogen production and
        large amounts of renewable electricity to produce CO₂‑free hydrogen.
                                                                               HYBRIT‑PROJECT IN LULEA, SWEDEN
     Take‑away                                                                 The HYBRIT initiative of the Swedish companies SSAB, LKAB
                                                                               and Vattenfall, investigates how to replace coal with hydrogen
     H‑DRI seems to be a very promising technology for climate‑neutral steel   in the steel‑making process and aims at achieving a fossil‑free
     production.                                                               steel value chain in 2026. After a pilot plant in Lulea (Northeast
                                                                               Sweden) was successfully put into operation in 2020, a
                                                                               demonstration plant shall be constructed by 2025.

                                                                                 Read more

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INITIATIV E FOR COA L REGIONS IN T R A NSITION                          24

                Decarbonising energy‑intensive industries

     Alcaline iron electrolysis (Electrowinning)
     Potentials:
      y high CO₂ reduction potential;
      y it requires solely renewable electricity;
      y it is the most energy‑efficient technology for climate‑neutral steel
        production.

     Challenges:
      y it is at a very early stage of development.

     Take‑away
     Electrowinning is expected to be ready for application too late for the
     transformation of most of the European steel industry. However, due to    SIDERWIN IN MAIZIÈRES‑LÈS‑METZ, FRANCE
     its comparatively low energy demand, it is worth keeping an eye on it.    In Europe, a consortium led by ArcelorMittal is currently
                                                                               constructing a pilot plant in France (Maizières‑les‑Metz) in order
                                                                               to further investigate Electrowinning technology.

                                                                                 Read more

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INITIATIV E FOR COA L REGIONS IN T R A NSITION                          25

                Decarbonising energy‑intensive industries

     CO₂ capture and utilisation (CCU) of waste
     gases from integrated blast furnaces
     Potentials:
      y it can be retrofitted to existing blast furnaces;
      y it is likely to be ready for application in 2025‑2030.

                                                                                                                            © thyssenkrupp Steel Europe AG
     Challenges:
      y low CO₂ reduction potential;
      y comparably energy‑intensive;
      y comparably expensive.
                                                                               CARBON2CHEM® IN DUISBURG, GERMANY

     Take‑away                                                                 The Carbon2Chem® project, led by the steel company
                                                                               ThyssenKrupp together with companies from the chemical
     CCU can, at most, be a bridging technology for short‑term CO₂             industry, explores how waste gases from conventional steel
                                                                               production can be captured and made usable for the chemical
     reduction of existing conventional blast furnaces. However, the risk of   industry. After the successful operation of a pilot plant in
     stranded assets is very high.                                             Duisburg, the processes are currently being scaled up for
                                                                               industrialisation.

                                                                                 Read more

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INITIATIV E FOR COA L REGIONS IN T R A NSITION     26

           H2                           Hydrogen

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INITIATIV E FOR COA L REGIONS IN T R A NSITION                           27

H2              Hydrogen

     Main future applications
     Hydrogen will play an important role in the future energy system;
     but, due to high production costs, its use is limited to applications
     for which direct electrification is not a viable option.

                                                                                                                                Photo by audioundwerbung
     Main future applications for hydrogen will be:

      y feedstock in the refining and chemical production industries;
      y sustainable energy supply for energy‑intensive industries;            HYDROGEN IS NOT A FUEL, BUT AN ENERGY
      y transport technologies (especially heavy‑duty transport);             CARRIER

                                                                              Hydrogen is often called a fuel and, from and end‑user’s view, it
      y renewable integration in the electricity system.                      will be consumed as such. But, unlike natural gas or oil, hydrogen
                                                                              needs to be produced. It is therefore more so a means to store,
                                                                              transport and redistribute energy. Today, the largest share of
                                                                              hydrogen is used in the chemical industry (as a feedstock, more
                                                                              than an energy carrier). It is mainly produced using fossil energy
                                                                              from coal and gas. In the future, the production of hydrogen will
                                                                              need to be low‑carbon and, eventually, zero‑carbon. Consequently,
                                                                              the EU’s hydrogen strategy focuses on clean hydrogen, which is to
                                                                              be produced with renewable energy, mainly wind and solar.

GO TO PREVIOUS PAGE                                                             Read more
INITIATIV E FOR COA L REGIONS IN T R A NSITION                              28

H2               Hydrogen

The EU hydrogen                                   2024   6 GW of renewable hydrogen electrolysers

strategy                                                 Replace existing hydrogen production
                                                                                                            HYDROGEN
                                                                                                            ROADMAP
A roadmap to 2050                                        Regulation for liquid hydrogen markets

                                                         Start planning of hydrogen infrastructure

The EU hydrogen strategy
stresses the urgency to scale                            40 GW of renewable hydrogen electrolysers
                                                                                                            EUROPE
                                                  2030
up hydrogen production and                               New applications in steel and transport
application.
                                                         Hydrogen for electricity balancing purposes

                                                         Creation of “Hydrogen Valleys”

                                                         Cross‑border logistical infrastructure
                                                                                                             HYDROGEN ROADMAP EUROPE

                                                                                                            A For
                                                                                                              SUSTAINABLE PATHWAY FORhydrogen
                                                                                                                  many applications,  THE
                                                  2050   Scale‑up to all hard‑to‑decarbonise sectors        EUROPEAN  ENERGY
                                                                                                              technologies   TRANSITION
                                                                                                                           already exist today.
                                                                                                             However, they are often not yet
                                                         Expansion of hydrogen‑derived synthetic fuels       competitive or their use is restricted to
                                                                                                             niches. The Hydrogen Roadmap Europe
                                                         EU‑wide infrastructure network                      gives an overview of the status quo and
                                                                                                             potentials of hydrogen technologies
                                                         An open international market with € as benchmark    across different scenarios of transitions
                                                                                                             to a low‑carbon energy system.

                                                                                                               Read more
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INITIATIV E FOR COA L REGIONS IN T R A NSITION    29

H2              Hydrogen

     Future hydrogen demand will vary
     widely in different coal regions
     Demand hot‑spots will be:

      y urban areas;
      y regions with energy‑intensive industry.

                                                       HYDROGEN DEMAND FOR DECARBONISED STEEL, CEMENT AND CHEMICAL
                                                       INDUSTRY IN 2050

                                                       The map shows regional distribution of additional industrial hydrogen demand in 2050 (blue colour shading).
                                                       Orange boundaries indicate NUTS2 regions with coal mining, peat and oil‑shale production.
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                                                       Source: Wuppertal Institute
INITIATIV E FOR COA L REGIONS IN T R A NSITION                                      30

H2              Hydrogen

     Providing green hydrogen can be a
     business opportunity for some regions
     The transition to a climate‑neutral hydrogen economy will bring
     massive investment needs.
     Regions with high renewable potential can become
     providers of green hydrogen.

     Hydrogen: an investment agenda

     The EU hydrogen strategy estimates that:

         ‘from now to 2030, investments in electrolysers could range between EUR 24-
         42 billion. (...) In addition, investments of EUR 65 billion will be needed for
         hydrogen transport, distribution and storage, and hydrogen refuelling stations.’

     A larger amount of money will need to be invested into the energy supply
     infrastructure to produce the required amounts of hydrogen. Until 2030,
     ‘EUR 220‑340 billion would be required to scale up and directly connect 80‑120 GW
     of solar and wind energy production capacity to the electrolysers to provide the       POTENTIAL FOR GREEN ELECTRICITY IN THE EU

     necessary electricity.’                                                                The map shows the technical potential for green electricity per NUTS 2 region. Coal regions
                                                                                            (hatched) and regions in which hydrogen is currently produced (bold boundaries) are shown.
                                                                                            Source: JRC 2020

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INITIATIV E FOR COA L REGIONS IN T R A NSITION                        31

H2              Hydrogen

     Developing a regional hydrogen strategy
     High investment costs and long lead times require regions to rapidly
     develop their own hydrogen strategies.

     Key questions are:

      y what will be the hydrogen demand in your region?
      y what is the potential to produce clean hydrogen in your region?     REGIONAL HYDROGEN STRATEGY IN NORTHERN
                                                                            NETHERLANDS
      y what can future hydrogen infrastructure look like?
                                                                            The Province of Groningen in Northern Netherlands has developed
                                                                            a regional hydrogen strategy that clearly looks at the necessary
                                                                            investments into a future hydrogen economy, and determines
                                                                            that it holds great economic and job potential for the region. The
                                                                            strategy assesses both regional hydrogen demand and renewable
                                                                            energy supply options and integrates them into a consistent
                                                                            picture of energy import and hydrogen export with neighbouring
                                                                            regions and countries.

                                                                              Presentation at the Coal Regions Virtual week (November 2020)
GO TO PREVIOUS PAGE                                                           The Northern Netherlands Hydrogen Investment plan 2020 (PDF)
INITIATIV E FOR COA L REGIONS IN T R A NSITION    32

                                        Options for non‑energy
                                        uses of coal

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INITIATIV E FOR COA L REGIONS IN T R A NSITION                               33

                Options for non‑energy uses of coal

          Future prospects of coal products
          There is a diverse field of research and projects regarding
          the use of coal as feedstock for new technologies, such as:

            y carbon fibres;
            y carbon electrodes;
            y nanomaterials;
            y and the application of coal as a fertilizer for agriculture.

          However, most technology options for non‑energy uses of
          coal today are not considered to be market‑ready, scalable              IEA REPORT NON‑ENERGY USES OF COAL (2018)
          and/or future‑proof due to high‑emissions production                    A number of new carbon‑based industries and technologies are
          routes. Therefore, these technologies are not a viable option           emerging in fields like energy storage, aerospace and in areas
                                                                                  that use composite materials to take advantage of the properties
          for coal regions.                                                       of carbon. The declining use of coal power generation in Western
                                                                                  economies may release this resource for other purposes. The
                                                                                  topics covered by this report include: rare earth element extraction
                                                                                  from coal, activated carbon products, carbon electrodes, carbon
                                                                                  fibre and composite production; carbon nanotubes and graphene;
                                                                                  and the production of humates agrichemicals from lignite.

                                                                                    Read more
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INITIATIV E FOR COA L REGIONS IN T R A NSITION                       34

       Accompanying notes

       Table of contents
       Introduction PAGE 35                                                      Hydrogen PAGE 53
       Why do we need this guidance? / Aims and scope                            Future application / The EU hydrogen strategy / Hydrogen
                                                                                 demand projections / Hydrogen in coal regions
       Re‑use of coal power plants PAGE 36
       Introduction / Energy storage / Conversion to (fossil) natural gas /      Options for non‑energy uses of coal PAGE 59
       Conversion to biomass / (Combined) renewable energy production            Future prospects of coal products
       / Non‑energy uses of coal‑fired power plant infrastructure
                                                                                 Annex I: helpful tools and handbooks PAGE 60
       Decarbonising energy‑intensive industries PAGE 46
                                                                                 Annex II: further reading PAGE 61
       Technology options to decarbonise steel production
       PAGE 49
       Direct reduction with green hydrogen and smelting in the electric
       arc furnace (H‑DRI) / Alcaline iron electrolysis (Electrowinning) / CO₂
       capture and utilisation (CCU) of waste gases from integrated blast
       furnaces

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INITIATIV E FOR COA L REGIONS IN T R A NSITION                                                           35

Introduction                                         To facilitate this collective effort, it is
                                                     necessary that all stakeholders in a
                                                     region have some basic knowledge of
                                                                                                              IN4CLIMATE.NRW
                                                     key technology options which exist and
Why do we need this                                  are in line with the requirements of the                 In North Rhine‑Westphalia (NRW), Germany’s industrial heartland,
                                                     transition to a climate‑neutral economy.
guidance?                                            Against this background, this toolkit gives a
                                                                                                              the state government has launched the initiative ‘IN4climate.NRW’
                                                                                                              to shape and accelerate the transformation of NRW’s industry to a
The energy transition towards a                      brief overview of key technology options with            climate‑neutral industrial base. The initiative is driven by a joint effort
climate‑neutral economy implies a                    high relevance for coal regions; specifically, it        of politics, companies and research institutes. It is important to note
fundamental shift in technologies (from              explores low‑carbon options for infrastructure           that the transition towards a low‑carbon economy is not only perceived
fossil to clean energy) and requires large and       linked to coal‑fired power plants, for                   as a challenge, but rather as an opportunity to bring innovation and
long‑term investments.                               energy‑intensive industry and for hydrogen.              investments to a region, which in the past used to be the biggest coal
                                                                                                              mining region in Europe.
Making use of existing infrastructure and            This toolkit takes a technological perspective:
sustaining existing value chains in the coal         which technology options exist and which
and coal‑related sectors will be key to making       technological developments are likely in                 We will demonstrate that successful climate protection and a strong
this transition more cost‑efficient and to keep      the future? The information gathered in this             economy are not mutually exclusive, but rather the foundations and
jobs and wealth creation in the regions.             toolkit provides decision‑makers in coal                 drivers of prosperity and quality of life in our state.
                                                     regions with a general overview of the current
With long investment cycles in the energy                                                                     Andreas Pinkwart
                                                     state of knowledge regarding the available
sector, it is clear that investments today                                                                    Minister of Economic Affairs, Innovation, Digitalisation and Energy of the State of North
                                                     technologies, enabling them to explore new
need to be in line with the long‑term goal                                                                    Rhine‑Westphalia, Germany
                                                     business models, which make use of the
of a climate‑neutral economy. Generally,
                                                     existing coal related infrastructure in their
investment decisions are made by private
                                                     regions.                                                 Around 30 companies and associations from the fields of steel and metals,
companies (e.g. energy utilities and
companies in energy‑intensive industries).                                                                    chemicals, cement, glass, paper and building materials are participating
                                                     This toolkit complements the existing toolkits
                                                                                                              in the initiative alongside six research institutes and the NRW state
However, the specific conditions of a region         for coal regions in transition. Questions about
                                                                                                              government. The platform is structured in so‑called innovation teams
(e.g. infrastructure, skilled workforce, potential   the re‑use of existing energy infrastructure             that span the topics of circular economy, hydrogen, political conditions,
partners along the value chain) will be              (e.g. coal‑fired power plants) and the                   narratives and heat.
decisive for the competitiveness of a site           transformation of regional energy‑intensive
over global alternatives. So, a key question         industries should be embedded in the overall             As a platform for knowledge‑sharing, dialogue and collaboration between
for regional decision‑makers is: under which         strategy development of the region (see                  representatives from industry, science and politics, the initiative offers
conditions are companies willing to further          Strategy Toolkit) and serve to make the                  a space in which to develop innovative strategies for a climate‑neutral
invest in a specific site? Many of these             regional economy viable for the future while             industrial sector, including new production processes and methods, suitable
conditions are beyond what individual private                                                                 infrastructure, and appropriate political conditions. IN4climate.NRW is
                                                     retaining jobs in the region (see Sustainable
investors can influence directly. Building                                                                    accompanied by the scientific competence centre SCI4climate.NRW, which
                                                     Employment Toolkit). Aspects of mine
                                                                                                              comprises prominent research institutes in the state, provides scientific
future‑proof infrastructure (e.g. for electricity    rehabilitation and repurposing of other coal
                                                                                                              support, and investigates options for the development and organisation of
and hydrogen), establishing new research             related infrastructure is addressed in the               a climate‑neutral and future‑proof primary sector. At present, IN4climate
facilities and improving the innovation system       Rehabilitation and Repurposing Toolkit.                  is considering how civil society can be involved in the initiative.
of a region – all this requires collective
effort from the public and private sectors,                                                                     Read more
companies, administrations, research and
educational institutions.                                                                                       List of innovative projects

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INITIATIV E FOR COA L REGIONS IN T R A NSITION                                                       36

                                                      some key techno‑geographical                        decommissioning costs, while also reducing          Deal, by, for example, following the EU’s
Aims and scope                                        interdependencies with respect to                   the cost of new site uses. In addition to being     smart specialisation approach. Furthermore,
This toolkit explicitly addresses the following       hydrogen infrastructure and showcasing              economically beneficial, the conversion of          there will be site‑specific challenges for every
themes.                                               first examples of hydrogen production               coal plants can also play an important role         re‑purposing project to be taken into account,
                                                      and use as future business models for               for a region’s overall transition efforts and       such as more limited options for plants in
 y What are viable alternatives for                   coal related infrastructure.                        preserve its historic identity as an energy         rural areas or complicated and cost‑intensive
   coal‑fired power plants and
                                                   y The potential of a non‑energetic use                 region.                                             renaturation of ponds of coal ash.
   coal‑related infrastructure with
   regard to decarbonisation pathways                of coal as a resource are explored. In               While the toolkit on ‘Environmental
   and regional economic development?                many cases, this potential is too small
   Technology examples and their                     to economically justify the continuation
                                                                                                          Rehabilitation and Repurposing’ looks into          Energy storage
                                                                                                          questions of governance, institutions and
   assessment (e.g. thermal storage units            of coal mining, but there are a few                  tools to support regional decision‑makers
   in power plants) are underpinned with             options for non‑energetic uses, like                                                                     Technology overview
                                                                                                          in the process of repurposing coal related
   existing pilot projects.                          the application of carbon as fertilizers,            infrastructure, this toolkit focuses on technical   The increasingly complex framework
                                                     for carbon fibre production, or for                  options to (re‑)use the infrastructure and sites    conditions of power generation paired with
 y For many coal regions the coal‑using              nanotechnologies that may become                     of coal‑fired power plants.                         the classic challenges associated with
   energy‑intensive industry sector                  a viable alternative beyond economic                                                                     network expansion call for the integration of
   of steel plays an important role. This            niches.                                              It includes options to convert power stations
                                                                                                                                                              new types of power generation facilities to
   sector is not equally relevant to all                                                                  to alternative energy facilities such as energy
                                                                                                                                                              serve as back‑up supply when solar and wind
   coal (mining) regions, but for some                                                                    storage, renewable energy hubs, gas and
                                                                                                                                                              provide less power. Storage solutions are
   the jobs in energy‑intensive industry
   outnumber the jobs in coal mining and          Re‑use of coal                                          biomass plants, and provides examples
                                                                                                          and ideas for non‑energy‑related options.
                                                                                                                                                              recognised as a key enabling technology for
                                                                                                                                                              this purpose. Most studies expect a significant
   power plants by far, and therefore play
   a crucial role in transition. The toolkit      power plants                                            If a region decides to keep the site for
                                                                                                          energy purposes, a combination of different
                                                                                                                                                              increase in the demand for electricity storage
                                                                                                                                                              between 2030 and 2040. Accordingly, the
   summarises key technology roadmaps                                                                     technologies will be most suitable in most
                                                                                                                                                              demand for energy storage is expected to
   for the decarbonisation of the steel                                                                   cases, as co‑production approaches show the
                                                                                                                                                              grow very rapidly in the coming years.
   industry, which can serve as a basis                                                                   highest efficiency rates. For gas and biomass,
   for decision‑makers when tasked with           Introduction                                            special attention needs to be given to limiting     A large number of energy storage
   crafting a regional development strategy.      Without a doubt, coal plant sites, including            factors related to carbon neutrality goals and      technologies are already available today,
                                                  their connections to power grids, water, and            long‑term applicability.                            ranging from thermal storage, and pumped
 y Hydrogen could play an important role
                                                  transportation, as well as the associated                                                                   hydro storage (which is mostly an option
   in the future energy system and coal                                                                   Generally speaking, as every region
                                                  skilled workforce, have significant value for                                                               for coal mines), to various electrochemical
   regions are both potential hotspots for                                                                is different with regards to existing
                                                  their regions. Their connected value chains                                                                 battery‑based storage solutions. They differ
   future hydrogen use and / or potential                                                                 infrastructure, economic specialisation,
                                                  must be taken into account. With falling                                                                    fundamentally in terms of their operating
   providers of hydrogen. However, the role                                                               geology, workforce and political contexts,
                                                  electricity prices of renewable competitors                                                                 principles and associated capacities
   for hydrogen in specific regions may vary                                                              each coal region faces different challenges.
                                                  and pressure on national governments to                                                                     (storage volume) and performance (input/
   strongly. There is a need for regional                                                                 Therefore, the arguments for or against a
                                                  fulfil their climate obligations to decarbonise                                                             output capacity). The competitiveness of
   (tailor‑made) hydrogen strategies, which                                                               certain option for after‑use of coal‑fired
                                                  the economy, maintaining the status quo in                                                                  electrochemical battery‑based storage
   align across regions into appropriate                                                                  power plants and their related infrastructure
                                                  coal regions is being increasingly challenged.                                                              has increased significantly over the past
   national and EU‑wide approaches.                                                                       must be carefully considered and fit into
                                                  Next to the option to demolish the power                                                                    few years and it is already competitive in
   In consequence, the toolkit stresses                                                                   an overall transition strategy for the region.
                                                  plant and possibly reuse the built‑in materials                                                             some markets. However, some estimates
   the necessity for integrated planning                                                                  This process must take into account existing
                                                  (e.g. steel), the conversion of coal plant sites                                                            indicate that even in the case of further
   with respect to hydrogen, highlighting                                                                 political strategies such as the EU Green
                                                  can be a valuable option, which reduces                                                                     significant cost reductions, batteries may

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INITIATIV E FOR COA L REGIONS IN T R A NSITION                                                      37

still struggle to achieve high market share
as long as carbon prices stay low. Long‑term
and seasonal storage volumes in particular
tend to be more expensive, while storage                               KEY CHARACTERISTICS OF ENERGY STORAGE TECHNOLOGIES
suitable for short‑term balancing will be more
competitive.                                                                                    Max Power              Discharge                                                                 Development
                                                                                                                                               Lifetime                    Efficiency
Thermal energy storage theoretically has                                                       Rating (MW)                time                                                                      stage
many advantages over electrochemical                                                         50‑400
                                                                                                                                                                    40‑80% (molten salt)       Market ready
battery‑based storage systems, including                                                     (molten salt)
generally lower costs (both on an upfront                               Thermal storage                             1‑24 h             Approx. 30 years
and total cost of ownership basis), longer                                                   up to 1 000                                                            80‑90% (carnot
                                                                                                                                                                                               Pilot stage
system life expectancy, non‑toxic designs and                                                (carnot battery)                                                       battery)
materials, and ease of recycling at the end
of a project’s life. However, the abilities of                          Pumped hydro
                                                                                             Up to 3 000            4h ‑ seasonal      30‑60 years                  70‑85%                     Market ready
lithium‑ion battery systems to provide both                             storage
peak demand reduction and backup power
                                                                                                                                       10‑20 years (1 000
with a more compact physical footprint also                             Li‑Ion battery       Up to 1 000            1min to 8 h                                     65‑95%                     Market ready
                                                                                                                                       ‑10 000 cycles)
make them a viable option.
Generally, the integration of energy storage
systems within existing power plants will
take advantage of several benefits: it uses
the existing infrastructure and keeps the site
as a place for power production. This might
                                                 Retrofitting coal‑fired power plants into such
also increase public acceptance and may
                                                 thermal energy storages can be considered
even provide job opportunities for former
                                                 as a viable option for future use of coal sites,
workers at these sites. In any case, a careful
                                                 as such a transformation largely benefits
assessment of the different technological
                                                 from reduced costs for infrastructure. Only
options needs to be considered, including
                                                 the boiler, coal‑ and flue‑gas cleaning and
approaches to combine several technical and
                                                 handling‑ systems needs to be discarded.
non‑technical options.
                                                 Other components, such as steam turbines,
                                                 generators, condensing heat exchangers and
Thermal energy storage                           water treatment equipment plants, as well
Thermal energy storage (TES) will be a key       as high value components for switching,
component of future energy systems. This is      transforming and transmitting high voltage
not only due to the fact that there is a need    power can be re‑used in their original forms
to help balance energy demand, but also that     and positions (Figure 1). The costs of such
half of the total final energy consumption       transformation can be estimated around                                                                                                              Existing coal
worldwide can be attributed to heat. New         USD 23‑27/MWht, which also covers the                                                                                                               power station
technologies with higher efficiencies are        instalment of heaters, storage and steam
expected to become market ready by 2025          generators.
to 2030.                                                                                                     F I G U R E 1 : I N T E G R AT I O N O F M O LT E N S A LT E N E R G Y S T O R A G E I N E X I S T I N G C O A L
                                                                                                             POWER PLANTS – SCHEMATIC FIGURE
                                                                                                             Source: DLK
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INITIATIV E FOR COA L REGIONS IN T R A NSITION                                                     38

There are currently a range of different        Carnot Battery also uses molten salt or                 efficiencies of 70‑85% can be assumed for         mines is currently being explored in Poland,
materials used for such thermal storage         water as media for storage, and transforms              pumped storage power plants. In contrast to       Belgium and Germany , assessing geological
facilities, ranging from (molten) salts, to     electricity into thermal energy and back                other forms of storage, either very short or      and geographical conditions, technical and
water, silicon, volcanic stones, compressed     to electricity as required. Compared to                 very long storage periods have no influence       engineering complexity, and feasibility of
air or miscibility gap alloys. Some of these    other thermal storage technologies such                 on the efficiency of the overall system.          construction and operation. Open pit mines
options are already in use, e.g. molten salt    as pressurised water tanks, the Carnot                                                                    are technically easier to handle, yet have
                                                                                                        The application of pumped hydro energy
energy high temperature storages based on       Battery is able to achieve higher storage                                                                 comparably lower capacities. The first
                                                                                                        storage is limited by the demand for suitable
nitrate salts have been used commercially in    efficiencies (from electricity to electricity)                                                            application of pumped hydro storage in
                                                                                                        geographic locations with a height difference,
solar thermal power plants (CSP) for several    with fewer energy losses. First prototypes of                                                             open‑pit mines is currently under construction
                                                                                                        enough space for the reservoirs, a waterway
years, with efficiency rates of 40‑80%. Other   this technology are currently being tested by                                                             in an old gold mine in Australia (see example
                                                                                                        and supply centres. In many coal regions,
options are still in the development stage.     several institutions, e.g. at energy start‑up                                                             below).
                                                                                                        natural geographic characteristics will prevent
Based on current knowledge, capacities up to    MALTA and at the German Aerospace Centre
                                                                                                        the standard application of pumped hydro
1 GWh can be realised.                          (DLR), with aims to start pilots at thermal                                                               Examples
                                                                                                        energy storage. Especially the sites of coal
                                                power plants.
                                                                                                        power plants will most likely not have the        Underground‑pumped storage hydro power
Examples
                                                                                                        desired characteristics. However, it is worth     plants project, Poland
                                                  Read more
Energy storage plant conversion based on                                                                noting that depending on the vertical scale
                                                                                                                                                          In 2017, the closure of the Silesian Krupinski
molten salts, Spain                             Miscibility Gap Alloys (MGA) is a new                   of prior mining activities, both abandoned
                                                                                                                                                          underground coal mine initiated a discussion
                                                material used for thermal heating that works            open‑pit and underground coal mines may be
In Asturias, northern Spain, the coal‑fired                                                                                                               about potential use of the site and its assets
                                                with phase change storing, which provides               suitable locations for an unconventional hydro
power station ‘Aboño I’ with a capacity of                                                                                                               for future development. As one prominent
                                                additional storage for sensible heat and                power application. The unconventional use of
342 MW is planned to close in 2021. EDP –                                                                                                                 alternative, the mines could be used for an
                                                can work up to very high temperatures of                pumped storage in abandoned underground
the company that owns the power station – is                                                                                                              2 underground pumped hydro storage. A first
                                                over 1 400 ºC. Research shows that the
therefore evaluating the potential to replace
                                                technology can be cost‑competitive with
the facility with an energy storage system
                                                other thermal storage methods. Its modular
consisting of molten salt electrical heaters,
                                                scalability also offers opportunities for a
that allows electric charge and discharge
                                                gradual transition away from coal‑fired power
from the power network. A first evaluation
                                                plants, an approach that is currently under
showed that the potential conversion could
                                                development, with a first pilot to be set up in
include a 358 MW storage facility with a
                                                2021‑2022.
discharge time of 2 hours. Total estimated
costs of the project are EUR 201 million,
                                                  Read more
with foreseeable job options for 300 workers
during construction and 50 workers after
completion.                                     Pumped hydro energy storage
                                                By pumping water vertically into a storage
  Read more                                     pond for later use, pumped hydro energy
                                                storage is a method of converting excess
New technology developments
                                                electrical energy into stored energy. From an
Carnot batteries are an emerging                energy management point of view, these rank
technology for comparably inexpensive and       among the peak load power plants and, due
site‑independent storage of electric energy     to their high capacities (up to 3 GW) among
with high capacities up to 1 000 MWh. A         the largest storage options. In general, overall
                                                                                                        FIGURE 2: COAL‑TO‑STORAGE CONVERSION IN COMBINATION WITH WIND
                                                                                                        AND SOLAR – ILLUSTRATION

GO TO PREVIOUS PAGE                                                                                     Source: DLR
INITIATIV E FOR COA L REGIONS IN T R A NSITION                                                     39

assessment revealed possibilities for the        account that electrochemical energy storage                                                             However, current research shows that the
installation of a power generation potential     systems have typical operation time spans              Conversion to (fossil)                           environmental benefits of gas for energy
of 93 MW with estimated investment costs         between 10 and 20 years due to limited                 natural gas                                      use are less clear than previously estimated
of EUR 174 million.                              cycle stability and durability. As lithium‑ion                                                          (Figure 3). Taking into account new findings
                                                 batteries are also used for electric cars and          As carbon prices increase in the EU Emission     regarding methane emissions along the value
  Read more                                      other mobility solutions, demand for lithium           Trading System, coal‑fired power plants          chain and the fact that burning natural gas
                                                 and therefore prices may increase in the               face increasingly strong economic pressure.      still produces emissions which need to be
The pumped storage hydro project in Kidson,                                                             As a result, the conversion to natural gas is
                                                 future. However, as technology development                                                              drastically reduced in the upcoming decade,
Australia                                                                                               being considered by some actors for power
                                                 on chemical batteries, including other types                                                            the risk to produce lock‑ins and stranded
To be finalised in 2022, the AUD 700 million     such as solid‑state batteries, has been                plant redevelopment projects and has been        assets is high. Therefore, the conversion of
K2‑Hydro Project will utilise two existing       expanded over the last years, it can be                implemented already at 67 former power           coal‑fired power plants to natural gas can
mining pits of an abandoned gold mine as         expected that more applicable solutions will           plant locations in the EU (GEM 2020).            only be a short‑term option in the majority of
the upper and lower reservoirs for a pumped      be available in coming years.                          Retrofitting existing sites of coal‑fired        cases.
hydro energy storage facility that will have                                                            power plants to use natural gas has the
a capacity of 250 MW and can provide up          Examples                                               advantage that gas fired power plants are        Example: coal to combined cycle gas
to 2 000 MWh in eight hours. The project                                                                technically better suited to provide flexible    turbine power plant transformation
is forecast to contribute AUD 353 million in     LEAG BigBattery project at coal‑fired power            supply than coal‑fired alternatives (similar     project in Bouchain, France
net public benefit and will provide 510 jobs     plant ‘Schwarze Pumpe’, Germany                        to the above‑described energy storage            In Bouchain, northern France, the energy
during construction and 20 operational jobs.                                                            solutions), which will be needed and valued
                                                 Finished in August 2020, the energy company                                                             company EDF transformed its coal‑fired
                                                 LEAG installed a 53 MWh capacity lithium‑ion           in systems with high shares of wind and          power plant that was shut down in 2015 into
  Read more                                                                                             solar energy. Furthermore, gas power plants
                                                 battery storage system on‑site of their still                                                           a combined cycle gas turbine (CCGT) with a
                                                 running lignite power plant Schwarze Pumpe.            can continue to supply heat in case of           capacity of 606 MW. The company invested
Chemical battery storage systems                                                                        combined heat and power (CHP) plants and         a total of EUR 400 million into the converted
                                                 LEAG is investing EUR 25 million in the
The greatest prospect for electrochemical        lithium‑ion storage facility comprising 13             benefit from using existing infrastructure       power plant, which started running again in
storage is the stabilisation of frequency and    containers full of battery racks. The German           and technical installations. The modifications   2016.
voltage within hourly and daily fluctuations.    state of Brandenburg takes EUR 4 million of            and replacements required depend greatly
                                                                                                        on the age of the equipment, access to gas       Through modern CHP production, the plant
So far, the most readily available technology    total investments. The main use of the facility                                                         reaches high efficiency rates of 62%. By
is lithium‑ion batteries, which have long        will be to provide primary load balancing              infrastructure and regulations to follow. The
                                                                                                        majority of already completed coal‑to‑gas        comparison, efficiencies of coal‑fired power
been used in laptops and mobile phones;          electricity to stabilise the grid.                                                                      plants range between 35‑46%. Higher
sodium sulfur batteries are also increasingly                                                           conversions tend to be replacements rather
                                                                                                        than retrofittings.                              efficiency generally also means fewer CO₂
becoming an alternative for station‑based          Read more                                                                                             emissions; however, as stated above, the
application due to their slightly lower                                                                 The primarily reasons for a conversion           overall emissions also depend on the climate
material costs and longer service life. Both                                                            to natural gas are the aforementioned            impacts of the whole production chain. The
methods have high energy densities and                                                                  advantages of the technical flexibility and      plant can work as a flexible counterpart in a
power‑to‑energy ratios. This makes them                                                                 cost reductions conferred by using existing      system with renewables as it accelerates to
particularly suitable for short‑term storage                                                            infrastructure. Another argument that is         top capacity in less than 25 minutes and can
over minutes or hours. Large battery storage                                                            often raised is that gas combustion produces     also be turned down to 30% without major
systems can already be set up relatively                                                                almost 45% fewer CO2 emissions than coal         emission drawbacks.
cost‑effectively today and quickly. The market                                                          and emits less other pollutants, so that other
prices are below EUR 1 million per MW of                                                                EU emission standards (e.g. for mercury) are
installed capacity with a storage capacity in                                                           easier to fulfil with gas‑fired power plants.
the range of MWh. It needs to be taken into

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